Managerial Ability and Financial Distress: An Analysis of Companies Listed on B3
DOI:
https://doi.org/10.11606/issn.1982-6486.rco.2026.230114Keywords:
Managerial skills., Financial distress, Resource-Base View TheoryAbstract
This study aims to analyze whether more skilled managers reduce the likelihood of Brazilian companies entering a state of financial distress. Data covering the five-year period from 2019 to 2023 were analyzed using logistic regression with the aid of Stata® software. The results indicate that more skilled managers perform their duties and make decisions in a way that lowers the probability of companies falling into financial distress. These managers analyze company information and the operating environment to enhance organizational efficiency. Consequently, these companies reduce the risk of failing to meet their financial obligations. These findings hold true across all sectors investigated, reinforcing the Resource-Based View (RBV) theory and highlighting that a company's economic condition is determined by how managers handle organizational resources and capabilities. This study expands upon previous findings by addressing a gap in the Brazilian literature, offering a valuable source of information for managers, researchers, investors, and other interested parties.
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